Residential Tenancies Act 1997

This section applies if—

a co-tenant (the leaving co-tenant) stops being a party to a residential tenancy agreement—

under section 35A; or

because of an ACAT order under section 35G (1) (a), (c) (ii) or (d); or

in accordance with section 46D (Termination for family violence); and

a bond is held in relation to the agreement; and

the leaving co-tenant paid some or all of the bond in relation to the agreement; and

1 or more of the remaining co-tenants continue to be a party to the agreement.

The remaining co-tenants must, not more than 14 days after the day the leaving co‑tenant stops being a party to the residential tenancy agreement—

pay to the leaving co‑tenant an amount equal to the bond paid by the leaving co-tenant under the agreement; and

notify the Territory that the leaving co-tenant has been paid under paragraph (a).

The remaining co-tenants may deduct from that amount—

any portion of rent unpaid by the leaving co-tenant; and

other reasonable costs in relation to the premises.

Example—reasonable costs for damage caused to the premises by the leaving co-tenant

A leaving co-tenant is not entitled to payment of any other amount of the bond under the residential tenancy agreement.

Subsection (2) does not apply if the amount that may be deducted under subsection (3) is more than the amount of the bond paid by the leaving co-tenant.

A leaving co-tenant may apply to the ACAT for resolution of a dispute in relation to subsection (2) or (3) as a tenancy dispute even if the leaving co-tenant has stopped being a party to the residential tenancy agreement.

Note The ACAT may make orders requiring the payment of an amount to a person—see s 83 (1) (c).